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Australia's peak horticulture export body has called on the Federal Government to reconsider plans to increase the costs of export certification services.

Eleven industry signatories, comprising key industry representative bodies from exporting horticultural industries and members of the Department’s Horticulture Export Industry Consultative Committee were united to oppose the substantial increases to export certification in a joint submission to the Department of Agriculture (DoA). The Australian Horticultural Exporters’ and Importers’ Association (AHEIA) has united with other horticultural industry bodies to oppose these changes.

"The cost increases, of over 40 per cent for export certification services which are proposed by the Department of Agriculture in the Cost Recovery Implementation Statement Plant Exports Certification 2019-20 (CRIS), are unmanageable for the horticulture industries," AHEIA CEO Andréa Magiafoglou said. "Australian horticulture is one of the least subsidised in the OECD and horticultural exporters operate in a high-cost environment influenced by labour challenges, escalating water costs and supply chain pathways overlaid by security requirements."

The changes follow public consultation with industry that closed on 31 January 2020, but Ms Magiafoglou says it comes at a time where farmers and exporters are also facing the challenges of ongoing drought and bushfires impacting key production areas.

"The proposed changes will increase the cost of compliance by over 40 per cent and will critically impact Australia’s competitiveness and reduce export growth," she said. "We call upon the Minister for Agriculture to support the horticulture industry by not proceeding with the proposed increases to export certification. "The AHEIA understands the need for export certification requirements, as well as the need to fund the biosecurity framework to protect Australia’s borders. The AHEIA also recognises the need for the government to recover the cost of delivering these services – as long as they can be provided efficiently and charged at competitive rates."

She added: "The DoA currently recovers 48 per cent of its budget from Australian farmers and exporters which is excessive and inconsistent with other similar departments in Australia and internationally – Austrade recovers 10 per cent of its $245 million budget; the Department of Industry, Innovation & Science recovers 15 per cent of a total $508 million; and the New Zealand Ministry of Primary Industries recovers only 29 per cent of its total NZ$715 million budget."

The Department of Agriculture, Water and the Environment told FreshPlaza it is reviewing cost recovery arrangements for food and plant export certification, to ensure export certification services are sustainably funded.

"It also supports Australia’s reputation as a safe, reliable supplier of high-quality food and plant products," a departmental spokesperson said. "Export fees and charges have not been revised since 2015. Biosecurity and export certification fees and charges must be adjusted to address the actual cost of delivering regulatory activities. This will ensure the exports certification system remains fit for purpose and able to support Australia’s agricultural exports."

Among the recommendations, the AHEIA has called on the Minister for Agriculture to not proceed with implementing the proposed increase in the fees and levies in the Cost Recovery Implementation Statement Plant Exports Certification 2019-20, and the Commonwealth budget allocation be increased to ensure that sufficient funding is provided to support policy development for the agriculture sector in the future.

"DoA must separate all policy functions from cost recovery to ensure integrity in the development of policy, the appropriate allocation of policy resources to Government priorities and removal of the cost on the industry for policy development," Ms Magiafoglou said. "Industry is calling on the Commonwealth Government budget allocation to reflect the Prime Minister’s stated objective of agriculture becoming a $100 billion industry by 2030, and ensure that sufficient funding is provided to support the policy development for the agriculture sector. Implementing the proposed cost recovery model now will pre-empt the Government’s agriculture strategy and limit the future growth of Australian agriculture."

For more informationAndréa MagiafoglouAustralian Horticultural Exporters and Importers Associationadmin@horticulturetrade.com.auwww.horticulturetrade.com.au

Australian fresh produce exporters say proposed new export fees would “cripple” the growth of Australia’s fruit, vegetable and nut exports.

AUSTRALIA’S fresh produce industry has rejected a revamped Federal Government program overseeing export fees and charges, warning price hikes of more than 40 per cent for some services would render Australian produce globally uncompetitive.The nation’s notoriously fragmented horticulture industry has made a united call for the Department of Agriculture to scrap its two proposed options for export fees and charges that would see the Department recover almost half of its entire annual budget from Australian farmers and exporters.The Department of Agriculture has been working on a revised cost-recovery model for export certification services since 2015 after operating at a deficit for a number of years.The latest iteration released last month proposes two models that would each raise $12.2 million from levies and fees-for-services, with fee hikes of 44-277 per cent.The amount raised covers a wider cost base than the current model, with an additional $1.53 million included to fund new enforcement activities, scientific and technical advice and an overseas counsellor network.AusVeg public affairs manager Tyson Cattle described both options as “unmanageable for the vegetable and horticultural industries”.“We understand the need for export certification requirements, as well as the need to fund the biosecurity framework to protect Australia’s borders … as long as they can be provided efficiently and charged at competitive rates,” Mr Cattle said. “The difficult conditions faced by the horticulture industry currently, including the worst drought in decades, and bushfires affecting production regions and freight of produce to market, make these cost increases especially hard for growers to absorb and remain competitive.”Australian Horticultural Exporters’ and Importers’ Association’s chief executive Andrea Magiafoglou said cost recovery in agriculture has extended beyond fee for service into cost recovery for policy development.“Australian horticulture is one of the least subsidised in the OECD (Organisation for Economic Co-operation and Development) and horticultural exporters operate in a high-cost environment influenced by labour challenges, escalating water costs and supply chain pathways overlaid by security requirements,” Ms Magiafoglou said.An Agriculture Department spokesman said fees and export arrangements needed to increase to cover the cost of delivering regulatory activities.

Australian fruit exports to China are predicted to take a hit as fears of coronavirus’ spread reduce flights and stymie Chinese trade.

AUSTRALIAN horticulture exporters are bracing for a hit to trade as fears of novel coronavirus’ spread slow orders from Chinese importers as cities there close down and shoppers stay home.

The fallout from the rapidly spreading virus is predicted to hit exporters who sell to Australia’s biggest trading partner in coming weeks.

Australian Horticultural Exporters’ and Importers’ Association chief executive Andrea Magiafoglou said many exporters were already looking for alternative markets to sell their produce. “We have some exporters who have a lack of orders (from China) coming through, and airfreight flights have been reduced,” she said.

“One of our main concerns is the logistics of moving products around once they do arrive in China.”

Qantas will suspend direct flights to mainland China from February 9, while the Department of Foreign Affairs has revised its travel advice for China to “do not travel” as cases of the deadly virus climb.

Last week the Department of Health warned Australians to avoid contact with wild or farm animals to help prevent the spread of the virus. If has since retracted the advice, with a spokesperson telling The Weekly Times there was currently no evidence that livestock or companion animals such as dogs and cats could be infected.

“However it is always a good idea to wash your hands with soap and water after contact with animals,” the spokesperson said.

Coronavirus is believed to have started in a food market that sells meat, poultry and fish as well as Chinese delicacies such as live reptiles and wild game, in Wuhan, in early December.

Scientists have suggested the most likely initial host of the infectious disease was bats, and potentially mirroring the spread of SARS — the disease it is so closely resembles — from bats to Asian palm civets, a wild animal bred in China for consumption.

Australia’s Department of Agriculture has continued to allay fears. “While this virus seems to have emerged from an unknown animal source in China, it is now spreading from person-to-person, and contact with people is the main route of infection,” a spokesperson said.

Prices of some exporting fees for fruit, vegetable, nut and flower could almost triple under a proposed government scheme.

A FEDERAL Government plan to raise export costs for fruit, vegetables, nuts and flowers is now more than two years behind schedule, with the latest iteration attracting industry backlash over a near tripling of some prices and the inclusion of new charges.Mounting pressure from horticulture bodies has led the Department of Agriculture to extend its deadline for public consultation on a new horticulture export scheme to early January. The first draft was released in 2015.The extension will allow the group — tipped to include at least eight of the nation’s biggest horticultural associations — to craft a joint submission calling for a complete reworking of the Government’s export cost-recovery arrangements.The proposed model would see the exporter levy increase 275 per cent, the cost of a phytosanitary certificate jump from $36 to $115 and registration fees to rise 47 per cent.New costs announced in the 2018-19 Federal Budget would cover scientific and technical advice, support for detained consignments and enforcement activities, adding $1.53 million to the scheme’s cost base.Australian Horticultural Exporters’ Association chief executive Andréa Magiafoglou said the changes could “critically impact” exporters’ competitiveness.AusVeg spokesman Tyson Cattle said the peak body for vegetable and potato growers wanted greater transparency.“We’re not against cost recovery, but we want to make sure it’s fair and equitable,” Mr Cattle said.“Our view is, given that horticulture is in its infancy in terms of exports, there needs to be some time for the industry to fully mature, so we don’t want any impediments to growth.”The Government is eager for the proposed model to get ministerial approval so the new fees can be introduced on July 1 next year.The current scheme is racking up losses of more than $6.3 million.A Department of Agriculture spokesman said the Government had engaged widely.“We are seeking to recover the expense of functions that are already being delivered to or on behalf of industry,” he said. “The price increases will ensure the department is sustainably recovering the full cost of the regulation activity.”

The 2018/19 trade figures are now in and the results speak for themselves. Fresh horticulture exports have exceeded expectations yet again, with the sixth record-breaking year in a row. Fresh fruit and vegetable exports surpassed $1.6 billion, representing a 20% increase in value and 8% improvement in volume from the previous year.

Table grapes have been the standout commodity, with over half a billion dollars of fruit exported and achieving the title of the first fruit commodity to reach this mark. Vegetable exports rose a solid 10%, with onions regaining ground and achieving export volumes not seen for several years. More recently, an excellent season is currently being reported for Queensland mandarins with high quality fruit and strong prices. We expect this will bolster trade export volumes over the coming year for this commodity.

China has maintained its position as the number one trading partner for fresh Australian fruit by both volume and value. Table grapes significantly contributed to this result, however improved pathways for both summerfruit and cherries have helped solidify this trade destination. For fresh vegetable exports, Singapore took out the top position for value, while carrot exports to United Arab Emirates pushed this market to the number one position for volume.

Half a year has now passed since enhanced air cargo security measures were implemented. Reports coming in from industry members and participants of the Air Cargo Security Advisory Forum (ACSIAF) held earlier this year indicate the transition was smoother than expected with no major impediments with the exception of higher operational costs.

Around the Brisbane ports, some stevedore and shipping line problems associated with capacity issues have been experienced, however these are hoped to be addressed prior to next year.

Moving forward, the AHEIA is preparing to host industry information-exchange meetings in Brisbane, Sydney and Melbourne markets for members, exporters and importers alike. More information will be provided on this on due course. We hope to see and hear your views on issues affecting your businesses.

Australian Horticultural Exporters’ and Importers’ Association criticises a decision to up export certification fees

The Australian Horticultural Exporters’ and Importers’ Association (AHEIA) has joined other industry bodies in condemning a proposal increasing fees and charges for export certification activities.

According to AHEIA, Australia’s Federal Department of Agriculture is proposing increases as much as 277 per cent for some certification activities.

The association says the changes would restrict the government’s commitment to enable Australian agriculture to become a A$100bn (US$68bn) sector by 2030.

Andréa Magiafoglou, chief executive of AHEIA, said the proposals reduce the competitiveness of the Australian horticultural industry.

“The Department of Agriculture has a responsibility to develop and implement programmes that support a more profitable, more resilient and a more sustainable agricultural sector that will in turn, help drive a stronger Australian economy,” Magiafoglou said.

“These proposed increases will have a vastly detrimental effect on horticultural exports, reducing the ability to compete globally and the impact will be felt all the way back to the farm gate.”

Citrus Australia is another industry body opposed to the changes, it said these fees will cost the average grower tens of thousands of dollars before they have even exported a single carton.

Joseph Saina, chairman of AHEIA, said the association recognised the Department of Agriculture had costs cost to meet, but there was no indication of how the money would be used.

“Across the board and based on the volumes and proposed fee hikes proposed by the department, this represents a phenomenal A$3.8m (US$2.6m) revenue increase for the department,” Saina said.

“This is without clear indication of where the money will be spent, nor providing any assurance for an improvement in service standards which have impeded export growth to date.”

AHEIA is preparing a detailed response to government and encouraged its members to provide input before the consultation period closes on 10 December.

Some of the leading decision-makers involved in Australia’s international fresh produce trade gathered in Melbourne yesterday for the Australian Horticultural Exporters’ and Importers’ Association (AHEIA) Industry Forum.

A wide-ranging programme covered some of the key issues facing the sector, including biosecurity, regulatory processes and improved market access.

Senator Bridget McKenzie, Australian minister for agriculture, delivered the opening address via video link. The morning session continued with presentations from David Ironside, Deb Langford, Mick Mihalenko and Malcolm Keen from the Australian Department of Agriculture.

Following a break for lunch, the afternoon session began with an examination of trends in global fresh produce trade through a presentation from Wayne Prowse of Fresh Intelligence Consulting. Prowse told the audience that 83m tonnes of fresh produce was traded across the globe in 2018, with Australia exporting some 499,521 tonnes of fresh fruit and 232,991 tonnes of fresh vegetables.

Prowse said over 60 per cent of Australian exports were shipped directly to protocol markets in 2018. China led the way in terms of market share, with 34 per cent of Australian fresh produce exports destined for the People’s Republic.

The acceptance of irradiation as an approved phytosanitary treatment under several new and renegotiated protocols is being viewed as a key driver for Australia’s export growth, particularly in Asia. Ben Reilly of Steritech, a company that has pioneered irradiation treatment in Australia, told the audience that his company has seen a substantial lift in the volume of fruit it handles across all categories over the past 12 months.

The demand has been so great that Steritech has now developed a second treatment centre on the outskirts of Melbourne. The new facility will provide better access to irradiation treatment for crops predominantly produced in south-east Australia, such as cherries and table grapes, while its proximity to Melbourne Airport (25km away) ensures a short transit time for airfreight.

The forum rounded out with a presentation from AHEIA chief executive Andréa Magiafoglou, who outlined the association’s key objectives for the year ahead. Magiafoglou said the forum remained an important date on the calendar for AHEIA members.

“The AHEIA AGM and Industry Forum are designed to connect members, update industry on the state of the global market and hear directly from Australian Government representatives involved in horticulture trade,” Magiafoglou explained. “This year attracted over 50 stakeholders, and speakers covered a variety of topics spanning global trade data, and regulatory processes in horticulture trade.”

Country's entire pear crop said to be in danger following unprecedented outbreak, with apples and kiwifruit also at risk

ruit crops including pears, apples and kiwifruit in some of Italy's major producing regions are reportedly under grave threat following an unusually widespread outbreak of brown marmorated stink bug.

The insect, which is native to several Asian countries and has recently established itself as a pest in part of Europe, North America and South America, is said to be worryingly prevalent this year across much of northern Italy, including Piedmont Lombardy, Emilia-Romagna, Veneto, Trentino-South Tyrol and Friuli-Venezia Giulia.

According to reports, the outbreak is so serious that some believe it threatens to wipe out Italy's entire pear crop, with estimated potential damage to that sector alone ranging from €250m to in excess of €400m.

Giorgio Mercuri, president of national cooperatives alliance ACI's agricultural division, called on the government to set up an emergency committee of ministerial and regional representatives to tackle the problem, which he said had been further aggravated by an unseasonable climate.

"This dramatic crisis, whose financial impact on businesses is remarkable, is now also expanding to other products – vegetables, soy and wheat – and regions such as Friuli Venezia Giulia and Piedmont, and is predicted that the damage will further increase," he said.

Agricultural body Confagricoltura's Emilia Romagna office released a statement confirming the bug had been detected in Italy's so-called golden quadrilateral, an area linking Ferrara, Modena, Bologna and Ravenna that is responsible for producing almost three-quarters of the country's pear crop.

The group's regional president Albano Bergami, who also produces pears near Ferrara, underscored the severity of the episode. "The reality is beyond our imagination and even more negative than any ominous initial forecast," he commented.

"Serious damage caused by the Asian bug is also being found on all varieties of pears, including Santa Maria in full harvest and even in the areas where the killer insect in the past had never appeared, so much so that now its presence can be considered endemic."

Uphill struggle

Even where crops are protected, for example with netting, the magnitude of the outbreak and the sheer number of bugs is apparently leading to damage that renders the remaining crops unprofitable.

"Some of our fellow producers have already left the pear plants to their fate because of [brown marmorated stink bug]," revealed Simone Spreafico, owner and director of Spreafico, one of Italy's largest fresh produce marketers, in conversation with Italiafruit.

A video recorded by Spreafico and posted on the Italiafruit website late last week showed a massive swarm of stink bugs apparently at a pear orchard in Veneto.

Another video, posted on Twitter by Professor Max Suckling, biosecurity science group leader at New Zealand's Plant and Food Research, showed the bugs crawling across a mower at an apple research orchard in Trentino, north-west Italy, managed by Fondazione Edmund Mach.

"The latest case was this week: a 40ha farm in Rovigo, which had just started harvesting the summer variety Santa Maria," Spreafico added. "After having seen the huge damage to the fruit, the owner decided to abandon all operations."

Even with covers, he said, volume losses would still be around 30-40 per cent. "Younger bugs, in fact, are so small that they can often slip into nets. We can do nothing to counter them. Unfortunately, this insect will take away even the little pears that we expected to harvest this year."

As far as Spreafico was concerned, it made no sense to produce if only two-thirds of the potential production ends up being viable. "It can be done for a year, two at most," he told Italiafruit. "The 2019 vintage is considered lost. Next year, we will be forced to cut down the trees.

"As producers we need immediate responses from government and research bodies, so we can overcome the bug problem in the shortest possible time."

Fruitnet understands that some producers in Italy are looking to adopt control measures similar to those employed in other parts of Europe and the US, where affected growers have been known to deploy an insect known as the Samurai wasp to bring stink bug infestations under control.

The wasps are known to deposit eggs in the bug's own eggs, which then die as the parasitic larvae grow.

“The appointment of Dr Andréa Magiafoglou will further enhance and enrich the solid representational foundation built and refined by Dominic Jenkin,” Mr Saina said. “Andréa has been involved at the grass roots level of horticultural production environments and has a proven ability to engage with the diverse range of stakeholders along the value chain.

“Over the last three years the AHEIA has continued to support and promote a highly proactive level of engagement across the broadening spectrum of dynamic and complex horticultural trade issues.

Security for fresh produce headed to the export market via aviation has increased and businesses within the Brisbane Markets® have installed infrastructure to ensure exports can continue without a hitch.

Since 1 March 2019, the new Enhanced Air Cargo Examination (EACE) process has been in effect globally and brings all export air freight up to the standards applied to US-bound cargo, which has been in place since 2017.

For fresh produce, this involves using electronic metal detection or human intervention to examine the lowest level of consolidation, known as ‘piece-level examination’, prior to uplift on to aircraft. All products destined for export must be examined by a Registered Air Cargo Agent (RACA), unless they are being sent by a Known Consigner or an Accredited Air Cargo Agent (AACA) in which caseit is assumed that the cargo has already been examined on a piece-level.

As of 1 July, the only Regulated Air Cargo Agent based at the Brisbane Markets site is Lindsay Fresh Logistics. The approvedKnown Consigners on site are Alfred E Chave Pty Ltd, A.S. Barr Group, and Global Fresh Australia Pty Ltd, trading as J.H. Leavy & Co. All involved have had to heighten their security, including installing physical locks, implementing staff protocols, applying for Air Security Identification Cards, and creating procedures to keep mainstream and secured produce separate.

International Logistics Manager for J.H. Leavy, Justin Keir, said that educating staff and site visitors of the changes was the biggest challenge of becoming a Known Consigner. “Visitors now have to wait until they are attended to by an appropriate staff member, so we’ve had to train our staff to challenge people they see wandering around that aren’t a part of our organisation,” Mr Keir said.

Anthony Joseph, Export Director at Alfred E Chave, said the security program registration process was straightforward as Alfred E Chave already had the critical infrastructure in place to support the program and its requirements. “As a significant exporter out of Australia, it was critical we became a Known Consigner to ensure business continued as usual,” Mr Joseph said.

A.S Barr Group Principal, Joe Saina, said becoming involved in EACE was essential to providing services to their customers and involved considerable changes to their site security. “As an international logistic provider supporting other exporters both on andoff shore, we had to become a Known Consigner. It means that our overseas customers are able to contact growers to source produce and we can undertake the logistics of getting that produce from the grower to the customer,” Mr Saina said.

In expectation of these changes, Lindsay Fresh Logistics installed an ElectroMagnetic Inspection Scanner (EMIS) which provides automatic detection of detonators and electronic circuits from Improvised Explosive Devices (IEDs), ammunition and weapons composed of metal. If found, the scanner provides both a visual and an audible alarm.

The EMIS at Lindsay Fresh is large enough to examine pallets of cargo, currently height limited to 150cm, does not depend on visual interpretation by the operator, and will not damage perishable items. According to Glen Lindsay, CEO of Lindsay Fresh Logistics, his company made the large investment in infrastructure to increase public safety as well as to add value and services fortheir customers. “With the implementation of EACE, nothing is transported overseas via air cargo without being metal and explosivetrace detected, it is now the international standard,” Mr Lindsay said.

“Without our RACA certification and the infrastructure we have implemented in association with it, Lindsay Fresh Logisticswouldn’t have an export air division.”

A further benchmark-setting, purpose-built 5,800m² refrigerated warehouse is set to be constructed at Brisbane Markets®.

The warehouse is to be positioned on the corner of Sherwood Road and Martin Taylor Drive, on land currently used for carparking at South Gate West, where the Saturday Fresh and Sunday Discovery weekend retail markets are held.

The facility is likely to take up to a year to build, and will include extensive cold room, ripening and methyl bromide rooms, storagecapabilities and an Australian Quarantine Inspection Serviceapproved fumigation facility featuring recaptured technology.

Brisbane Markets Limited (BML) Chief Executive Officer, Andrew Young, said J.H. Leavy & Co.’s decision to set a benchmark with the construction of the planned warehouse facility was closely aligned with his organisation’s strategic focus. “Brisbane Markets® is fast becoming noted on the international stage for its state-of-the art warehousing and distribution facilities. It is certainly another feather in our cap to be able to attract developments of this calibre,” Mr Young said. “Such recognition is the product of the BML Board’s commitment to stakeholder engagement and a concentrated site maintenance and development strategy since the horticulture industry took ownership of the site in 2002,” he said.

J.H. Leavy & Co. General Manager, Ben Bartlett, said every cold chain and technological consideration had been put into the design phase with the aim of delivering state-of-the-art facilities supported by the latest technology. “The produce industry globally is changing and with that comes the need for larger facilities that are capable of vertically integrating more of the produce supply chain and have the ability to meet and anticipate our clients’ needs ongoing,” Mr Bartlett said.

“Expanding in Queensland is important to us because of our business’ long history here. We are in Australia’s largest fresh produce production region and have a fantastic platform from which to continue our growth,” he said.

The Darling Group acquired J.H. Leavy & Co. in 2016, significantly upping its scale and capability. Darling Group Managing Director, Andrew Darling, said the development would be a significant milestone for the Group. He said it was imperative that the business add greater value to its growers’ and customers’ businesses through offering reliability of product and service.

“The new warehouse will play a significant role in enabling innovation, expansion and improving our service offerings. Thisdevelopment is an exciting step towards greater opportunities for us, our growers and our clients,” Mr Darling said.

Exports climb to record levels over 2018/19 season, with shipments to mainland China propelling the growth

It’s been a vintage season for Australian stonefruit exports, with volumes climbing to 22,861 tonnes between July 2018 and April 2019, according to data prepared by Fresh Intelligence Consulting.

The performance betters the previous record of 20,600 tonnes set in 2003 for the 10-month period, within which the bulk of Australia’s stonefruit harvest and exports take place.

The 2018/19 volume represents a 29 per cent increase on the 2017/18 campaign, while the overall value of trade (A$88.68m in 2018/19) rose 37 per cent year-on-year.

Mainland China continues to emerge as a focal point for the Australian industry, with exports to the Asian nation climbing 88 per cent year-on-year to 9,348 tonnes over the 2018/19 campaign. This translated to a market share of 40.9 per cent.

Singapore ranked second on the list of export destinations by volume, taking 2,530 tonnes, 5 per cent up on 2017/18.

Strong export growth was reported in Saudi Arabia (volumes up 42 per cent to 1,957 tonnes) and Indonesia (up 60 per cent to 993 tonnes).

Peaches and nectarines accounted for 69 per cent of the export shipments, while plums represented 29 per cent.

Peak industry body Summerfruit Australia (SAL) recently appointed Trevor Ranford as its new chief executive. Ranford replaces John Moore, who will continue to work with SAL on improving export market access for Australian growers.

Ranford has over 40 years of experience in the horticulture industry, including various executive roles with organisations in the pipfruit and cherry industries.

“This project has been funded by the Australian Trade Commission as a part of the Asian Business Engagement (ABE) grant program and is supported by Trade and Investment Queensland and the Department of Agriculture and Fisheries Queensland.”